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The effect of investment decision financing decision dividend payment policy and company size

Author

Listed:
  • Risal

    (Economic Faculty, Panca Bhakti University, Pontianak, Indonesia)

  • Kristiawati Endang

    (Economic Faculty, Panca Bhakti University, Pontianak, Indonesia)

Abstract

The company value is a picture of the conditions or specific circumstance of the objective of the company through the process of activity over a period that can provide confidence and assurance to the public against the company. This research aims to examine and analyze the effect of the investment decision, financing decision, dividend payment policy and company size on company value. The population of this research is manufacturing companies listed in Indonesian Stock Exchange in the period 2010-2014 with a population of 143 companies. Sampling was done by using purposive sampling method and produced 116 companies as research samples. The method used is quantitative method. Multiple regression model was used to test the relationship between the dependent and independent variables. The results of multiple regression analysis showed that the financing decision variable has a significantly positive effect on the company value with a significance level of 0.000. The dividend payment policy has a significant positive effect on the value of the company with a significance level of 0.007. The company size variable has a significantly positive effect on the company value with a significance level of 0.000. While the investment decision variable did not find effect on company value. This research implies that a) the company should consider investment decision making to be made through careful planning for expansion, equipment purchases or investment in any form, b) the company should make financing decision in a planned way, c) the company should be more careful in deciding policy on profit distribution, whether it will be distributed in the form of dividend or capital gain, d) a company that has assets of more than the level of certainty the company will also increase, that affects the high company value in the eyes of investors.

Suggested Citation

  • Risal & Kristiawati Endang, 2017. "The effect of investment decision financing decision dividend payment policy and company size," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 3(2), pages 105-113.
    • Handle: RePEc:apb:jabsss:2017:p:105-113
    DOI: 10.20474/jabs-3.2.5
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    References listed on IDEAS

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    Cited by:

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    5. Surya Nuriansyah & Asrid Juniar & Redawati, 2017. "Factors Affecting Dividend Payout Ratio of Food and Beverage Manufacturing Companies in Indonesia," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 3(6), pages 229-238.
    6. Fouzan Al Qaisi, 2019. "The Relationship Between Cash Flow and Profitability of Insurance Companies listed in Amman Stock Exchange in Jordan," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(1), pages 51-60, 01-2019.
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